Money & taxes · Free tool
Freelance rate calculator
Free freelance rate calculator: the hourly and day rate that covers your income goal, business costs, tax and unbillable time.
How it works
Revenue needed = (target income + business costs) ÷ (1 − tax allowance). Hourly rate = revenue ÷ (billable hours per week × working weeks). Day rate = hourly × hours per day.
The tax allowance is a simple percentage you choose, not a tax calculation.
Choosing your inputs
- Billable hours: most solo businesses can't bill 40 hours a week, because sales, admin and learning take time.
- Weeks off: include holidays, sick days and gaps between clients.
- Costs: software, equipment, insurance, accounting, and health insurance if you pay it.
Next: how to set freelance rates.
Frequently asked questions
What is a good freelance hourly rate?
One that covers your income target, costs, taxes and unbillable time and still sits within what your market pays.
Update history
- : first published; figures checked against the sources listed.